Archrock Reports Second Quarter 2025 Results and Raises 2025 Financial Guidance

Archrock, Inc., a leading provider of natural gas compression services, has released its financial results for the second quarter of 2025. The company has reported significant growth in revenue and profitability, alongside strategic acquisitions and increased shareholder returns.

Financial Highlights

For the second quarter of 2025, Archrock reported a revenue of $383.2 million, a substantial increase from $270.5 million in the same period of 2024. Net income for the quarter was $63.4 million, translating to an EPS of $0.36, compared to $34.4 million and $0.22, respectively, in the second quarter of 2024. Adjusted net income stood at $68.4 million with an adjusted EPS of $0.39, up from $35.8 million and $0.23 in the previous year. Adjusted EBITDA also saw a significant rise to $212.7 million from $129.7 million in the second quarter of 2024.

Business and Operational Highlights

Archrock's contract operations segment generated $318.3 million in revenue, marking a 41% increase from the previous year. The segment's adjusted gross margin was $222.2 million, up 52% from $146.2 million in the second quarter of 2024. The company also reported a record utilization rate of 96% for its fleet. Additionally, Archrock completed the acquisition of Natural Gas Compression Systems, Inc. and NGCSE, Inc. on May 1, 2025, and sold 155 compressors to Flowco for $71.0 million.

Strategic Initiatives and Corporate Developments

Archrock declared a quarterly dividend of $0.21 per share, a 27% increase compared to the second quarter of 2024. The company returned $96.9 million to shareholders through dividends and share repurchases in the first half of 2025. Archrock also raised its full-year 2025 Adjusted EBITDA guidance to a range of $810 to $850 million.

Management's Perspective

Brad Childers, President and CEO of Archrock, highlighted the company's outstanding performance in the second quarter, emphasizing the successful acquisition of NGCS and the high utilization rate of the fleet. Childers also noted the strong customer demand for Archrock's equipment and services, particularly in the Permian Basin, and expressed confidence in the company's ability to meet future demand driven by growing LNG exports and power generation needs.

Future Outlook

Archrock has provided revised guidance for the full year 2025, incorporating the financial impact of the NGCS acquisition and the divestiture of certain compression assets. The company expects net income to range between $249.6 million and $289.6 million, with Adjusted EBITDA projected between $810 million and $850 million. Contract operations revenue is anticipated to be between $1.26 billion and $1.28 billion, while aftermarket services revenue is expected to range from $205 million to $215 million.

SEC Filing: Archrock, Inc. [ AROC ] - 8-K - Aug. 04, 2025